Individuals are considered tax residents if they spend more than 183 days in Estonia within 12 months or have a permanent home in the country...

Estonia has established a network of double taxation agreements (DTAs) with various countries to prevent the same income from being taxed in multiple jurisdictions....

The Digital Nomad Visa allows remote workers to live and work legally in Estonia while enjoying its digital infrastructure's benefits. However, there are significant tax implications to consider...

To become a tax resident in Estonia, an individual must meet at least one of the following criteria: Permanent Residence...

In Estonia, Value Added Tax (VAT) is a significant part of the tax system. Here’s a summary of the current VAT rates and exemptions in Estonia...

Individuals can earn up to €6,000 per year tax-free. This allowance is gradually reduced for higher incomes...

Estonia employs a flat income tax rate of 20% on personal income. This means that all individuals pay the same tax percentage regardless of income level...

It's important to note that having an Estonian ID card does not automatically make you an Estonian tax resident. Some people mistakenly believe that if they receive a salary from an Estonian company

Under the Income Tax Act, income tax is imposed on payments for the use of copyrighted intellectual property, such as royalties. When a company in Estonia pays a royalty, it generally needs to withhold a license fee.

The Income Tax Act defines "costs of entertaining guests" as expenses incurred for providing catering, accommodation, transportation, or entertainment to guests and cooperation partners...

The tax-exempt limit for daily allowances during assignments abroad is 50 euros for the first 15 days of the assignment (15 days per calendar month at most) and

Fringe benefits are subject to income tax at the employer’s level at a rate of 20/80 and social tax at a rate of 33%. Social tax is levied on the amount that includes both income tax and non-deductible VAT...

With an A1/E101 certificate, a person who works outside the country where he/she has social security insurance can prove that he/she is covered under that

Employee's payroll calculation: From the total cost 1338 EUR - 61% (821,2 EUR) is received by the employee and 39% (516,8 EUR) is paid in taxes...

In most countries, dividends are not tax-free. This means that, in addition to corporate income tax, most foreign shareholders of an Estonian company will be...

As a rule, payment of dividends is not taxed in Estonia. At the moment of profit distribution, corporate income tax corresponding to the distributed sum must be paid...

The main idea behind corporate income tax in Estonia is that companies are only taxed when they distribute their profits, rather than when they earn them. This means ...

If your company has a VAT ID, then VAT returns must be submitted and VAT paid by the 20th of the month following the month that the tax return concerns. This means ...

Corporate Income tax on undistributed profits

0% until 30.06.2026
2% from 01.07.2026 - 31.12.2028 (as part of a new defense tax initiative) ...

Recently (17.09.2024), the Estonian government approved a 2% tax on corporate profits as part of a new defense tax initiative.